Morguard Corporation and Morguard Real Estate Investment Trust Acknowledge Proceeds from Target Settlement

MISSISSAUGA, ON, July 13, 2016 /CNW/ - Morguard Corporation (TSX: MRC) and Morguard Real Estate Investment Trust (TSX: MRT.UN) ("Morguard REIT") acknowledge total proceeds in the amount of $39.3 million (inclusive of sales tax) from a settlement with Target Canada, currently under the Companies' Creditors Arrangement Act ("CCAA") protection, and its parent, Target Corporation, related to lease guarantee claims at eight retail properties in Canada. 

The settlement proceeds include $12.6 million to Morguard Corporation, $12.4 million to Morguard REIT and $14.3 million to Morguard's co-owners and investor clients at impacted properties.

In 2011, Morguard negotiated lease assignments and amending agreements with Target Canada that had lease guarantees and recourse back to Target Corporation. Management's ability to negotiate lease guarantees resulted in a more favourable outcome compared to landlords that did not have guarantees.

Target Leases Included in Settlement
For clarity, Target Canada leases at the following eight properties in the Morguard owned and managed retail portfolio were part of the settlement with Target Corporation:

Cottonwood Mall

Chilliwack, BC

Bonnie Doon Centre

Edmonton, AB

Prairie Mall

Grande Prairie, AB

Shoppers Mall

Brandon, MB

Lawson Heights

Saskatoon, SK

Cambridge Centre

Cambridge, ON

Bramalea City Centre

Brampton, ON

East York Town Centre

Toronto, ON


Target Leases Acquired by Retailers
In 2015, Target Canada leases in a further six properties in the Morguard owned and managed portfolio were acquired by retailers:

Coquitlam Centre

Coquitlam, BC


Opened Feb 2016

Pine Centre Mall

Prince George, BC


Opens August 2016

Southdale Centre

Winnipeg, MB


Opened Jan 2016

Intercity Shopping Centre

Thunder Bay, ON


Opens Fall 2016

Aurora Centre

Aurora, ON

Canadian Tire

Opened May 2016

Centerpoint Mall

Toronto, ON


Opens Fall 2016


Target Lease Acquired by Morguard REIT
One further Target Canada lease was acquired by Morguard REIT to realize the long-term leasing opportunity:

The Centre

Saskatoon, SK


Use of Proceeds
The proceeds from Target Corporation will be used for active redevelopment and remerchandising programs to create long-term value at retail centres. The management teams are actively executing on programs to enhance the tenant mix, increase rental rates and draw new traffic from primary and secondary markets. A full leasing and redevelopment update will be provided with the Q2 Financial Results for both Morguard Corporation and Morguard REIT.

Disposition of Office Property – Morguard Real Estate Investment Trust
During Q2, Morguard REIT also disposed of a non-strategic asset, Centre de la Cite in Point-Claire, QC, for $22.4 million (net of closing costs).  The 127,500-square foot Class A suburban office complex was sold unencumbered.  Proceeds from the sale were used to pay out an operating line and pay out non-strategic mortgages.

About Morguard Corporation
Morguard Corporation (TSX: MRC) is a major North American real estate and property management company.  It has extensive retail, office, industrial, multi–suite residential, and hotel holdings owned directly, or through its investment in Morguard REIT (TSX: MRT.UN) and Morguard North American Residential REIT (TSX: MRG.UN). Morguard also provides real estate management services to institutional and other investors. Morguard's combined real estate portfolio is valued at $16.0 billion.

About Morguard Real Estate Investment Trust
Morguard REIT (TSX: MRT.UN) is a closed-end real estate investment trust, which owns a diversified portfolio of 49 retail, office and industrial income producing properties in Canada with a book value of $2.9 billion and approximately 8.7 million square feet of leasable space. For more information, visit

SOURCE Morguard Corporation

For further information: Morguard Corporation, K. Rai Sahi, Chairman and Chief Executive Officer, T 905-281-4800; Morguard Corporation, Paul Miatello, Chief Financial Officer, T 905-281-4800; Morguard Real Estate Investment Trust, Pamela McLean, Chief Financial Officer, T 905-281-4800


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890